EconPapers    
Economics at your fingertips  
 

Austerity in the Baltic states during the global financial crisis

Karsten Staehr ()

Intereconomics: Review of European Economic Policy, 2013, vol. 48, issue 5, 293-302

Abstract: The Baltic states were arguably the countries most severely affected by the global financial crisis. This article discusses the boom preceding the crisis, the ensuing austerity policies and the economic effects of these policies. All three countries maintained fixed exchange rates, but the degree of fiscal austerity varied across the countries, with Estonia undertaking the strongest fiscal consolidation in 2009. The downturn was so swift and deep that expansionary policies were unlikely to affect short-term outcomes. Growth returned towards the end of 2009, largely driven by exports. The export performance cannot be directly linked to the austerity policies. The main lesson from the Baltics is that increased macroeconomic stability must be attained by avoiding overheating and unsustainable financial exposure. The challenge for the future is to ensure that austerity policies are implemented during economic booms. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2013

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1007/s10272-013-0472-9 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intere:v:48:y:2013:i:5:p:293-302

Ordering information: This journal article can be ordered from
http://link.springer.de/orders.htm

Access Statistics for this article

Intereconomics: Review of European Economic Policy is currently edited by Brigitte Preissl and Derek Kruse

More articles in Intereconomics: Review of European Economic Policy from Springer, German National Library of Economics, Centre for European Policy Studies (CEPS)
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-01-06
Handle: RePEc:spr:intere:v:48:y:2013:i:5:p:293-302